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F5 Networks, Inc. (FFIV) Information Technology - Communications Equipment | Reports October 25, After Market Closes

Enterprise technology is one of the fastest growing sectors in the technology space. F5 Networks is one of those companies that have seized this opportunity to reach new heights. The company is scheduled to release its FQ4 earnings this Wednesday, after the market closes. Despite strong upside in the industry, results are expected to maintain its steady slowdown.

Analysts surveyed by Estimize estimate earnings of $1.96 for the fiscal fourth quarter, reflecting a 6% increase from a year earlier. Revenues for the period are estimated to increase 4% to $520.86 million, marking a slight improvement from the third quarter. Shares are up 22.5% in 2016 and historically have increased 2% immediately through the print. Despite what appears to be decelerating growth, it clearly hasn’t had an impact on share prices. 

F5 Networks most recent report was less than encouraging, with both top and bottom line growth considerably slower than previous quarters. The quarter recorded an 8% increase on the bottom line and 3% on the top. North American and Asian markets both contributed strong sequential growth while EMEA revenues were down following ongoing macroeconomic uncertainty, particularly the UK’s referendum to withdraw from the European Union.

During the quarter the company also introduced a new versions of its BIG-IQ management platform, aimed at mitigating DDoS attacks. This is particularly important given the recent cyber attacks last week that shut down some of our largest websites. Its widely expected that the platform will help boost top line growth along with strength across its other business segments and higher software revenues. Ongoing product refreshes coupled with better execution will help F5 capture greater market share.

There still remains a number of near term hurdles the company will need to overcome including weaker IT spending and competition from Juniper and Cisco.